INTERNATIONAL FINANCIAL REPORTING ANALYSIS

International Financial Reporting Analysis

International Financial Reporting Standard

Introduction

Effective measurement and inventory management is necessary to keep the companies financial statements updated. Inventories are one of the items of the statement of financial position and are placed under the head of current assets.  Inventory is defined as assets that are held for sales or that can be converted to liquid assets which assist in the production of goods for sale.

Discussion

Management and valuation of inventory is a very significant component in the management of current assets in the statement of financial position.  If this area is not given due consideration, consequences can ...